The Australian distributor of Chinese-made LDV vehicles is facing court after allegedly misleading thousands of consumers about the durability of its popular utes and vans.
The Australian Competition and Consumer Commission (ACCC) has launched Federal Court proceedings against Ateco Automotive, which trades as LDV Australia, alleging the company falsely advertised its T60 Max ute and G10 van as “tough”, “robust”, and capable of handling harsh Australian conditions—despite allegedly knowing the vehicles were prone to rust and corrosion.
According to the ACCC, LDV advertisements ran from 2019 to November 2024, showing the T60 and G10 models driving through beaches, rivers, dirt roads, and other rugged terrain. Yet the watchdog alleges the company failed to warn consumers that these very conditions could accelerate rusting in the vehicles—sometimes within just five years of manufacture.
“Consumers rightfully expect that the vehicle they purchase will live up to the quality and uses that it was advertised to include,” ACCC Chair Gina Cass-Gottlieb said. “They lost the opportunity to make an informed decision that may have involved purchasing an alternative vehicle that did not carry the same risks”.
The ACCC claims that by the time the advertising campaign ended, LDV Australia had received more than 5000 complaints about rust or corrosion in the T60 and G10 models. Notably, complaints had started rolling in even before the ads first aired in 2019.
Between 2018 and 2024, over 60,000 T60 and G10 vehicles were sold in Australia, generating more than $1.5 billion in revenue for LDV Australia.
The ACCC further alleges LDV offered a 10-year anti-corrosion warranty on the T60 ute between 2019 and 2020, despite allegedly already receiving complaints and knowing that rust was a significant issue. The watchdog argues that the promotional materials—aired on television, radio and online—may have misled consumers and exposed them to unexpected repair costs or premature vehicle degradation.
LDV Australia says it has been in “good discussions” with the ACCC for the past 18 months in an attempt to resolve the concerns and offer remedies to affected customers.
“It is disappointing this process has ended in these legal proceedings,” said Dinesh Chinnappa, General Manager of LDV Australia, in a statement. “We look forward to defending the ACCC’s allegations in court.”
LDV Australia is a major distributor for the Chinese-made brand and operates through 102 dealerships nationwide.
The case is expected to test the limits of automotive advertising in Australia, particularly around how manufacturers and distributors communicate performance expectations in extreme conditions. The ACCC is seeking penalties, declarations, corrective advertising, and consumer redress.
